Trump Announces Most-Favored-Nation Drug Pricing Deals With Nine Pharmaceutical Companies

On December 19, 2025, Trump announced pricing agreements with nine major pharmaceutical companies, including Amgen, Bristol Myers Squibb, Merck, GSK, Novartis, and Sanofi, tying U.S. prices for certain drugs to the lowest prices paid by other developed nations under a "most-favored-nation" framework. The deals cover treatments for conditions including diabetes, rheumatoid arthritis, multiple sclerosis, HIV, and hepatitis, and extend most-favored-nation pricing to state Medicaid programs.

In exchange, the companies committed to more than $150 billion in new U.S. manufacturing and research investment and will receive a three-year reprieve from certain pharmaceutical tariffs. The companies also agreed to sell some medicines directly to consumers at a discount through a new federal platform, TrumpRx, launching in January 2026.

The administration billed the deals as a historic win on drug pricing, a popular and long-standing voter concern. Critics note the arrangements rely on voluntary industry cooperation rather than binding statutory price controls, and that pharmaceutical companies have previously offset headline price cuts through narrower eligibility or higher prices on other products, leaving the durability of the promised savings uncertain.